HOUSTON, Jan. 17, 2012 /PRNewswire/ -- Rick's
Cabaret International, Inc. (NASDAQ: RICK), through its wholly
owned subsidiary, RCI Holdings, Inc., has purchased two real estate
parcels in Dallas and Ft. Worth.
(Logo:
http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)
The company paid a total of $5.5
million for the two parcels, paying $2 million in cash and the remaining $3.5 million financed by the seller through a 10
year note at an interest rate of eight percent.
The first property is at 12325 Calloway Cemetery Road in
Fort Worth and includes the
building where the company's Cabaret East adult nightclub is
located. The second property is at 2151 Manana Drive in
Dallas and is home to a separately
owned gentlemen's club, Jaguar's Gold Club, which will
become a rental tenant of Rick's Cabaret.
"This is a great investment for us in a vibrant market that has
the end result of lowering our monthly cash outlay, since we no
longer will be paying rent for Cabaret East and we will be
collecting rent on the property currently occupied by Jaguars,"
said Eric Langan, President
and CEO of Rick's Cabaret. "The acquisitions expand our
holdings in a great region and will give us a very nice return on
investment from day one."
Subsidiaries of Rick's Cabaret currently own and operate eight
properties in the Dallas/Ft. Worth Metroplex. The company has
23 adult nightclubs nationwide.
About Rick's Cabaret: Rick's Cabaret International, Inc.
(NASDAQ: RICK) is home to upscale adult nightclubs serving
primarily businessmen and professionals that offer live
entertainment, dining and bar operations. Nightclubs in
New York City, Miami, Philadelphia, New
Orleans, Charlotte,
Dallas, Houston, Minneapolis and other cities operate under the
names "Rick's Cabaret," "XTC," "Club Onyx" and "Tootsie's Cabaret".
Sexual contact is not permitted at these locations. Rick's Cabaret
also operates a media division, ED Publications, and owns the adult
Internet membership Website couplestouch.com as well as a network
of online adult auction sites under the flagship URL
naughtybids.com. Rick's Cabaret common stock is traded on NASDAQ
under the symbol RICK. For further information contact
ir@ricks.com.
Forward-looking Statements: Certain statements contained
in this release regarding Rick's Cabaret future operating results
or performance or business plans or prospects and any other
statements not constituting historical fact are "forward-looking
statements" subject to the safe harbor created by the Private
Securities Litigation Reform Act of 1995. Where possible, the
words "believe," "expect," "anticipate," "intent," "would," "will,"
"planned," "estimated," "potential," "goal," "outlook," and similar
expressions, as they relate to the company or its management have
been used to identify such forward-looking statements. All
forward-looking statements reflect only current beliefs and
assumptions with respect to future business plans, prospects,
decisions and results, and are based on information currently
available to the company. Accordingly, the statements
are subject to significant risks, uncertainties and contingencies,
which could cause the company's actual operating results,
performance or business plans or prospects to differ materially
from those expressed in, or implied by, these statements.
Such risks, uncertainties and contingencies include, but are not
limited to, risks and uncertainties associated with (i) operating
and managing an adult business, (ii) the business climates in
cities where the company operates, (iii) the success
or lack thereof in launching and building the company's
businesses, (iv) the operational and financial results of the
company's adult nightclubs, (v) conditions relevant to real estate
transactions, (vi) the loss of key personnel, and (vii) laws
governing the operation of adult entertainment businesses.
Additional factors that could cause the company's results to differ
materially from those described in the forward-looking statements
are described in forms filed with the SEC from time to time and
available at www.ricksinvestor.com or on the SEC's internet website
at www.sec.gov. Unless required by law, Rick's Cabaret does
not undertake any obligation to update publicly any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
SOURCE Rick's Cabaret International, Inc.